Correlation Between Guggenheim Managed and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Guggenheim Managed and Old Westbury at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Guggenheim Managed and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Guggenheim Managed Futures and Old Westbury Large, you can compare the effects of market volatilities on Guggenheim Managed and Old Westbury and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Guggenheim Managed with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guggenheim Managed and Old Westbury.
Diversification Opportunities for Guggenheim Managed and Old Westbury
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guggenheim and Old is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Guggenheim Managed Futures and Old Westbury Large in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury Large and Guggenheim Managed is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Guggenheim Managed Futures are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury Large has no effect on the direction of Guggenheim Managed i.e., Guggenheim Managed and Old Westbury go up and down completely randomly.
Pair Corralation between Guggenheim Managed and Old Westbury
Assuming the 90 days horizon Guggenheim Managed Futures is expected to under-perform the Old Westbury. But the mutual fund apears to be less risky and, when comparing its historical volatility, Guggenheim Managed Futures is 1.09 times less risky than Old Westbury. The mutual fund trades about -0.02 of its potential returns per unit of risk. The Old Westbury Large is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,594 in Old Westbury Large on December 7, 2024 and sell it today you would earn a total of 374.00 from holding Old Westbury Large or generate 23.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guggenheim Managed Futures vs. Old Westbury Large
Performance |
| Timeline |
| Guggenheim Managed |
| Old Westbury Large |
Guggenheim Managed and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guggenheim Managed and Old Westbury
The main advantage of trading using opposite Guggenheim Managed and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guggenheim Managed position performs unexpectedly, Old Westbury can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Old Westbury will offset losses from the drop in Old Westbury's long position.| Guggenheim Managed vs. Barings Global Floating | Guggenheim Managed vs. Ab Global Real | Guggenheim Managed vs. Doubleline Global Bond | Guggenheim Managed vs. Kinetics Global Fund |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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